Selling Capital Allowences from Self Employed to Ltd Buisness

Selling Capital Allowences from Self Employed...

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The capital allowences from my self employed buisness were sold for 1k into my Ltd company.

As they were several years old, have I as the self employed buisness owner incurred tax in doing so?

The description on the HMRC website are vague relating to what the charges are and I forgot about this as the accountant transfered the assets in tax year 2013-2014 (but I only transfered the money late April) so I dont know what to put on the SA form.

Replies (9)

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By johngroganjga
31st Jan 2015 07:04

You can't have sold capital allowances. Do you mean you sold the fixed assets on which you had been claiming?

You seem to misunderstand what this site is for. It is a website for accountants, not a place for non-accountants to come for free advice.

However you refer to having an accountant. Why are you seeking free advice on here when you can ask the accountant who dealt with the transaction you are asking about the tax consequences of?

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By bgm
31st Jan 2015 08:34

Yes I mean fixed assets.

I have no problem seeking advice from my accountant or paying for it but my accountant is not avaliable until Monday.

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James Reeves
By James Reeves
31st Jan 2015 09:05

So are you saying that your accountant has not completed your SA return?

There is not nearly enough info here to answer your question. There may well be balancing allowances and/or balancing charges to take into account for your trading profits.

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RLI
By lionofludesch
31st Jan 2015 09:54

Monday

Think you're going to have to wait to ask your accountant on Monday, bgm.

You're asking us to provide you with information that we just don't have.

Why did you wait until the last minute ?   It's going to cost you £100.

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By bgm
31st Jan 2015 13:14

I complete my SA as its normally straightforward and have been so for my SE status for years. The issue is my company wasnt trading for a year. Capital equipment has been winding down to 1k. I started a limited company and wanted to close down the SE. Spoke to the HMRC and sorted that for the end of the tax year 14. So no profits, 1k of equipment that I sold to the limited company for 1k. No capital gains.

Unfortuantly I have a lot going on i.e. Im working 100+ hours a week at the moment (I dont want to but I have little choice at the moment) and ill family members. I know its easy to criticize but such is life.

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Replying to Matrix:
RLI
By lionofludesch
31st Jan 2015 13:32

Excuses

bgm wrote:

I complete my SA as its normally straightforward and have been so for my SE status for years. The issue is my company wasnt trading for a year. Capital equipment has been winding down to 1k. I started a limited company and wanted to close down the SE. Spoke to the HMRC and sorted that for the end of the tax year 14. So no profits, 1k of equipment that I sold to the limited company for 1k. No capital gains.

Unfortuantly I have a lot going on i.e. Im working 100+ hours a week at the moment (I dont want to but I have little choice at the moment) and ill family members. I know its easy to criticize but such is life.

Mate - you've had ten months.  Yes - it is easy to criticize.

If you've been working 100+ hours a week for ten months, it's still no excuse.  You should be able to spare a few quid to get someone else to fill in your return. Or to pay the £100 fine (though you'll still be stuck with filling in the return).

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By bgm
31st Jan 2015 13:45

Enjoy your weekend.

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RLI
By lionofludesch
31st Jan 2015 15:23

Appeal

You could always appeal against your penalty.

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By duncanedwards
31st Jan 2015 19:08

You could submit making the worst case assumption/estimate, pay the tax on that basis and then correct next week If that works, might cost less than £100. E&OE

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